Location: Peoria, IL | Metro: Peoria, IL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $910 | $29,784 | 3.06% | A+ |
| 2BR | $1,150 | $37,968 | 3.03% | A+ |
| 3BR | $1,480 | $43,543 | 3.4% | A+ |
| 4BR | $1,620 | $46,218 | 3.51% | A+ |
U.S. Census Bureau data (2024)
The ZIP code 61605 in Peoria, IL presents an interesting scenario for both renters and landlords. The median household income stands at $26,392, while the market rate for rent, known as the ZORI (Zillow Observed Rent Index), is $1,004 per month. This suggests that a significant portion of residents might struggle to meet the market rate given their income levels.
In contrast, the Fair Market Rent (FMR) for the fiscal year 2024, which is the standard payment amount for Section 8 vouchers, is set at $900. This is notably lower than the market rate but aligns more closely with the financial capabilities of the average household in this area.
With 57.5% of the 13,424 population being renters, the competition among landlords is likely high. The affordability gap between the market rate and the median income could lead to a higher preference for Section 8 vouchers, as they offer a more stable and guaranteed form of rental income compared to relying on cash-paying tenants who may face financial hardships.
Landlords in ZIP 61605 should consider the benefits of accepting Section 8 vouchers. While the voucher payment of $900 is below the market rate, it ensures a consistent income stream and reduces the risk of vacancy. In a market where many households cannot afford the ZORI, vouchers become a practical solution for both parties, providing tenants with affordable housing and landlords with steady, reliable income.
The takeaway for landlords is clear: accepting Section 8 vouchers can be a strategic move in a competitive rental market where the affordability gap is significant. It allows them to tap into a larger pool of potential tenants and secure long-term, stable occupancy rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.